Customers question bankrupt Venice contractor

Attorney Herbert Donica, left, goes over papers with Trustee Andrea Bauman, center, in bankruptcy court in Tampa on Thursday. They represent people who say they lost money to contractor Terry Ream, right. Thursday. Courtroom sketch by Douglas A. Land

Published: Thursday, January 23, 2014 at 8:26 a.m.

Last Modified: Thursday, January 23, 2014 at 8:26 a.m.

TAMPA - Former customers and subcontractors of Venice contractor Terry Ream came to a bankruptcy courtroom here Thursday, all asking a similar question: What happened to my money?

One by one, they explained how they paid for expensive renovations, only to have Ream never begin construction or abandon work, leaving some homeless. Subcontractors say they signed on with Ream and were never paid.

More than 50 homeowners, subcontractors and creditors are trying to get back more than $1.2 million from Ream's now-bankrupt Terry Ream Construction Inc.

The case has generated wide attention in the South County area, where Ream had become one of the largest contractors and developed a reputation for quality work. In 2012, his company reportedly brought in $3.3 million in revenue.

Then, suddenly, Ream began walking away from jobs for which he had received large payments.

The Venice Police Department is investigating the case but no criminal charges have been filed.

Thursday's hearing in the bankruptcy case was mandated by the court to allow former customers and legal representatives to speak directly to Ream.

Wearing a charcoal-gray hooded sweatshirt and jeans, Ream spoke softly and in short sentences. Asked by former customers what led to his insolvency, he repeatedly responded, “I honestly don't know.”

He admitted going on a cruise and paying himself and his wife a salary of $3,000 a week. But, in response to a question, Ream denied moving assets into a foreign bank account.

Tampa-based attorney Herbert Donica, who is representing the alleged victims' interests, asked how Ream kept track of his finances. Ream, 43, said that his bookkeeping involved looking at his work registers.

“You can run a $3 million company just by looking at the register?” Donica asked.

“I guess not,” Ream said.

The alleged victims were eager to share their stories but not their names. Many said they were embarrassed that they had lost so much money and did not want their names associated with the case.

A Venice resident said he paid Ream more than $60,000 to remodel a home he and his wife had purchased on Venice island.

He said Ream would send just one worker into his home at a time to chip away at demolition. When the man pressed Ream for action, the man said he was assured a crew would be sent over the week of Thanksgiving.

Then, Ream filed for bankruptcy.

“I'm in a situation where I'm basically homeless because my home is not livable,” said the man, his face flushed. “I can't help but feel that this was purposeful.”

Also at Thursday's hearing were subcontractors who said they were never paid for several projects they completed for Ream's company.

Randy Ross, who owns the Venice-based Cabinetree cabinet company, said he befriended Ream after the two began to work together when Ream moved to Venice in 2008. He said before Thanksgiving last year, Ream told Ross he would repay the money he owed him.

“He sat right across the table from me on a Wednesday afternoon, looked me in the eye and said 'I'll have a check for you for $40,000 or $50,000 by the end of the week,' ” Ross said. “Now I know when he told me that he knew that was not the truth.”

Ream's attorney said in an earlier interview that the contractor got in financial trouble because of the economic downturn that hit the area after the real estate collapse.

But former customers from Taylorville, Ill., where Ream worked before moving to Venice, said the contractor encountered the same problems there: taking hundreds of thousands of dollars from customers without completing the work.

According to court records, Ream filed for Chapter 7 bankruptcy with the Central District of Illinois in October 2004.

In that filing, Ream said he owed more than 30 homeowners, sub-contractors, state agencies and other creditors more than $571,890.29.

Although that number is significantly less than the more than $1.2 million Ream says he owes in his most recent bankruptcy, the previous bankruptcy shows that this is not the first time customer deposits have vanished while in his care.

Steve Biondolino, who lives in Taylorville, Ill., just outside Springfield, said he hired Ream to build an addition to his home in 2004 after Biondolino coached Ream's brother in soccer.

In January 2004, the Biondolinos paid Ream and his company, Central R Construction, about $80,000 to start the project, which Biondolino said Ream promised to have finished in six weeks.

But by September 2004, Ream had filed for bankruptcy, leaving the couple with a half-built addition to show for their $80,000.

To finish the addition, the Biodolinos had to take out a $20,000 loan and build the rest largely by themselves.

Eventually they settled with Ream for $5,000, although Biondolino said he paid some $6,000 in legal fees and another $6,000 to subcontractors who were never paid for their work on the addition.

“It was a long, sad, painful experience that my wife and I are still paying for,” Biondolino said.

Sarasota County residents shared painful experiences of their own inside the incandescent-lighted meeting room in Tampa.

Ream's attorney, Laurie Blanton, refused to comment about the meeting and advised Ream not to speak to the media.

But Donica, who is representing the alleged victims' interests, said some of Ream's answers were troubling, especially with regard to a series of large loans Ream took out in the summer of 2013.

The loans, some of which were for hundreds of thousands of dollars, all flowed into Terry Ream Construction Inc., Donica said. He asked Ream why he took out the loans.

“I was trying to keep the business going,” Ream said softly, looking down.

Ream's answers concerned both Donica and Ream's old friend Ross, who sat behind Ream's left shoulder.

Ross said Ream's actions were not only damaging to his victims but also to the reputations of all construction contractors.

“It concerns me that when these situations occur, it casts a shadow over all of the contracting businesses and everyone is guilty by association,” Ross said.

<p><em>TAMPA</em> - Former customers and subcontractors of Venice contractor Terry Ream came to a bankruptcy courtroom here Thursday, all asking a similar question: What happened to my money?</p><p>One by one, they explained how they paid for expensive renovations, only to have Ream never begin construction or abandon work, leaving some homeless. Subcontractors say they signed on with Ream and were never paid.</p><p>More than 50 homeowners, subcontractors and creditors are trying to get back more than $1.2 million from Ream's now-bankrupt Terry Ream Construction Inc.</p><p>The case has generated wide attention in the South County area, where Ream had become one of the largest contractors and developed a reputation for quality work. In 2012, his company reportedly brought in $3.3 million in revenue.</p><p>Then, suddenly, Ream began walking away from jobs for which he had received large payments.</p><p>The Venice Police Department is investigating the case but no criminal charges have been filed.</p><p>Thursday's hearing in the bankruptcy case was mandated by the court to allow former customers and legal representatives to speak directly to Ream. </p><p>Wearing a charcoal-gray hooded sweatshirt and jeans, Ream spoke softly and in short sentences. Asked by former customers what led to his insolvency, he repeatedly responded, “I honestly don't know.” </p><p>He admitted going on a cruise and paying himself and his wife a salary of $3,000 a week. But, in response to a question, Ream denied moving assets into a foreign bank account.</p><p>Tampa-based attorney Herbert Donica, who is representing the alleged victims' interests, asked how Ream kept track of his finances. Ream, 43, said that his bookkeeping involved looking at his work registers.</p><p>“You can run a $3 million company just by looking at the register?” Donica asked.</p><p>“I guess not,” Ream said.</p><p>The alleged victims were eager to share their stories but not their names. Many said they were embarrassed that they had lost so much money and did not want their names associated with the case.</p><p>A Venice resident said he paid Ream more than $60,000 to remodel a home he and his wife had purchased on Venice island.</p><p>He said Ream would send just one worker into his home at a time to chip away at demolition. When the man pressed Ream for action, the man said he was assured a crew would be sent over the week of Thanksgiving.</p><p>Then, Ream filed for bankruptcy.</p><p>“I'm in a situation where I'm basically homeless because my home is not livable,” said the man, his face flushed. “I can't help but feel that this was purposeful.”</p><p>Also at Thursday's hearing were subcontractors who said they were never paid for several projects they completed for Ream's company. </p><p>Randy Ross, who owns the Venice-based Cabinetree cabinet company, said he befriended Ream after the two began to work together when Ream moved to Venice in 2008. He said before Thanksgiving last year, Ream told Ross he would repay the money he owed him.</p><p>“He sat right across the table from me on a Wednesday afternoon, looked me in the eye and said 'I'll have a check for you for $40,000 or $50,000 by the end of the week,' ” Ross said. “Now I know when he told me that he knew that was not the truth.”</p><p>Ream's attorney said in an earlier interview that the contractor got in financial trouble because of the economic downturn that hit the area after the real estate collapse.</p><p>But former customers from Taylorville, Ill., where Ream worked before moving to Venice, said the contractor encountered the same problems there: taking hundreds of thousands of dollars from customers without completing the work.</p><p>According to court records, Ream filed for Chapter 7 bankruptcy with the Central District of Illinois in October 2004.</p><p>In that filing, Ream said he owed more than 30 homeowners, sub-contractors, state agencies and other creditors more than $571,890.29.</p><p>Although that number is significantly less than the more than $1.2 million Ream says he owes in his most recent bankruptcy, the previous bankruptcy shows that this is not the first time customer deposits have vanished while in his care.</p><p>Steve Biondolino, who lives in Taylorville, Ill., just outside Springfield, said he hired Ream to build an addition to his home in 2004 after Biondolino coached Ream's brother in soccer.</p><p>In January 2004, the Biondolinos paid Ream and his company, Central R Construction, about $80,000 to start the project, which Biondolino said Ream promised to have finished in six weeks.</p><p>But by September 2004, Ream had filed for bankruptcy, leaving the couple with a half-built addition to show for their $80,000.</p><p>To finish the addition, the Biodolinos had to take out a $20,000 loan and build the rest largely by themselves.</p><p>Eventually they settled with Ream for $5,000, although Biondolino said he paid some $6,000 in legal fees and another $6,000 to subcontractors who were never paid for their work on the addition.</p><p>“It was a long, sad, painful experience that my wife and I are still paying for,” Biondolino said.</p><p>Sarasota County residents shared painful experiences of their own inside the incandescent-lighted meeting room in Tampa.</p><p>Ream's attorney, Laurie Blanton, refused to comment about the meeting and advised Ream not to speak to the media.</p><p>But Donica, who is representing the alleged victims' interests, said some of Ream's answers were troubling, especially with regard to a series of large loans Ream took out in the summer of 2013.</p><p>The loans, some of which were for hundreds of thousands of dollars, all flowed into Terry Ream Construction Inc., Donica said. He asked Ream why he took out the loans.</p><p>“I was trying to keep the business going,” Ream said softly, looking down.</p><p>Ream's answers concerned both Donica and Ream's old friend Ross, who sat behind Ream's left shoulder.</p><p>Ross said Ream's actions were not only damaging to his victims but also to the reputations of all construction contractors.</p><p>“It concerns me that when these situations occur, it casts a shadow over all of the contracting businesses and everyone is guilty by association,” Ross said.</p>